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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (38453)	6/30/2001 8:10:55 PM
From: Dealer	Read Replies (3) \| Respond to of 65232

From Donald Sew: JUNE 30 INDEX UPDATE (From Stock Attack 11 thread) JUNE 30 INDEX UPDATE ------------------------------- The NAZ NET NEW HIGHs-LOWs broke above 200 yesterday which is the highest level since the spring of 2000, but the NAZ/NDX are not yet close to setting HIGHER HIGHS. So is this a POSITIVE DIVERGENCE or a NEGATIVE DIVERGENCE or should it be ignored due to the realignment of the RUSSEL. stockcharts.com We should not ignore that this indicator is being skewed by the RUSSEL, but if this divergence continues where the NAZ NEW HIs-LOs are still high and the index price cannot set a HIGHER HIGH - I would consider that as a NEGATIVE DIVERGENCE. Some may argue that it is a positive divergence on the basis that the NET NEW HIs-LOs leads the index, similar to the APRIL bottom, and at that time, I too felt it was a positive divergence. My position now would be that is the case at an important bottom, but the NAZ/NDX already has clearly rallied off of an important bottom. I do not feel that NET NEW HIGHs-LOWs should be used as a timing device, but to just give a picture of the environment. I have noticed in the past that movements/changes in the NET NEW HIGHs-LOWs can lead the market by several months.